April 1, 2025 (press release) –
Two weeks ago, we concluded a very productive European Council. We addressed many crucial issues, including our support to Ukraine, defence, and migration. And, at a time when people’s concerns focus on their economic situation, on wages, on quality jobs, on the twin transition, Leaders do not lose sight of the urgency to deliver answers to these concerns.
To the contrary. Our meeting had a strong focus on competitiveness, on shared prosperity. On how to build a more resilient and sustainable future for European citizens. Moved by a sense of urgency in the geoeconomic context, and building upon important initiatives of the European Commission, in line with the Competitiveness Compass, the European Council decided to take action to close our innovation gap, to close our productivity gap, to cut on red tapes.
To renew European Union’s promise of shared prosperity, Leaders focused on three key areas: first, on cutting unnecessary red tape; second, on making energy more affordable for citizens and companies; and third, on turning savings into productive investments.
Through the reduction of bureaucracy by 25% for all companies and 35% for SMEs we will make it easier for all companies in our economic space, without losing sight of our goals, such as the green transition.
Through the reduction of energy prices, we respond to the needs of our citizens and help companies be more competitive.
Through the integration of our financial markets, businesses and citizens will get the funding for more innovative companies.
Business as usual is not an option, because as of today, around €300 billion of European Union families’ savings flow out of European Union markets each year. These are €300 billion that don’t fund businesses in the European Union.
And this needs to change. This is why we agreed clear targets, clear taskings, clear timelines to guide our work towards a genuine Savings and Investments Union.
Becoming more competitive on all fronts is not just the right path, it is the only path for a stronger Union. Because being competitive means creating more economic resilience, more quality jobs and better salaries for our citizens. But competitiveness also needs a strong investment in education, research, innovation, and skills.
That is why it was so important to host, the day before the European Council, the Tripartite Social Summit together with the social partners. Working closely with trade unions and business federations is the right path to ensure that strong competitiveness results in shared prosperity for all. To ensure that our values and our social model are protected.
Values and social cohesion which are at the core of our European project. A project of peace and prosperity that needs economic strength and defence credibility to go hand in hand.
On the one hand, defence and security investments drive technological advancements that benefit industries beyond the military sector. Linking regions and supply chains from various member states. Interconnecting sectors, infrastructures, centers of knowledge, and local communities for the benefit of a more cohesive and competitive Union that leaves no-one behind, no region forgotten.
On the other hand, a more prosperous economy will make sure that we have the resources to invest in our own defence. The decisions we took in the March European Councils were a turning point in moving towards a strong and more sovereign Europe of Defence.
It was the result of a very good cooperation with the European Commission and its President, which presented its very useful White Paper just before the last European Council. The activation of the National Escape clauses will free up fiscal space in the national budgets of the Member States. The “SAFE” instrument of up to €150 billion in loans will support member states in boosting the defence capabilities that are urgently needed.
We now need to continue to move with a sense of urgency to complete this work, and, if necessary, take further decisions, to ensure a just and lasting peace in Ukraine, to ensure a just and lasting peace in Europe as a whole.
Finally, Leaders agreed to boost our network of partners. It is precisely in this critical time that the European Union must deepen its ties with like-minded nations and to expand strategic partnerships towards global stability.
When trust in multilateral institutions is under strain and unpredictability is the norm, the European Union is a reliable, predictable and trusted partner and is behind the United Nations and the UN Charter, no matter what. That is why it was so relevant to welcome in the European Council the United Nations Secretary General António Guterres to discuss Europe’s global engagements. Building our partnerships, strengthening our trade relations, has been a core priority since the start of my mandate.
It is impossible to tackle climate change on our own. It is impossible to reduce global inequalities unilaterally. It is impossible to protect oceans and biodiversity by ourselves. A multipolar world needs a strong multilateral system and an international rules based order. Driven by a bold sense of purpose – of peace, prosperity, and partnerships.
Let me conclude, first of all, for the European Council it is very clear the sense of urgency on defence and on competitiveness. Urgency on cutting red tape, urgency on promoting a Savings and Investments Union and urgency to approve the global framework to invest more, better, faster, together in our own defence.
Thank you very much.
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